Equity Release will reduce the value of your estate and can affect your eligibility for means-tested benefits.
Releasing equity from a home has up until recently had a stigma associated with it.
The good news is that times are changing for the better. Advice is now strictly regulated by the Financial Conduct Authority and underwritten by the Equity Release Council.
It can be a valid and very useful financial tool and should not be shunned simply because of historical negative press.
Why would you release equity?
- There has been incredible growth in house pricing over the last few decades. As a result, many over 60’s have built up large amounts of equity in their homes
- People are living longer. So, many retired people have insufficient income from their pensions to sustain a satisfactory lifestyle and are unable to supplement income in other ways
- Many people have become attached to their homes and do not want to leave their property
- You may want to help a child with a deposit for their first home
- If you are not leaving a large inheritance it can help make the most of your assets in life
There are many reasons to consider but, understanding whether it is suitable is perhaps the most important part of the process.
Have a read of our blog to learn more about the different kinds of equity release. It also goes into some more detail on when you should and shouldn’t consider equity release. An important thing to remember is that it is not for everyone.
If you thinking about releasing equity from your home and would like to deal with one familiar person who genuinely cares about doing the right thing for you. Get in touch with an adviser and find out whether it is the right thing for you.